Current through Register Vol. 48, No. 38, September 20, 2024
Policy statement. The UCC Division uses an information
management system to store, index, and retrieve information relating to
financing statements. The information management system includes an index of
the names of debtors named on financing statements that have not lapsed. This
Section describes the UCC information management system.
a) Primary data elements. The primary data
elements used in the UCC information management system are the following:
1) Identification numbers.
A) Each initial financing statement is
identified by its file number as described in Section
180.10.
Identification of the initial financing statement is stamped on written UCC
records or otherwise permanently associated with the record maintained for UCC
records in the UCC information management system. A record is created in the
information management system for each initial financing statement and all
information comprising that record is maintained in the system. The record is
identified by the same information assigned to the initial financing
statement.
B) A UCC record other
than an initial financing statement is identified by a unique file number
assigned by the filing officer. In the information management system, records
of all UCC records other than initial financing statements are linked to the
record of their related initial financing statement.
2) Type of record. The type of UCC record
from which data is transferred is identified in the information management
system from information supplied by the remitter.
3) Filing date and filing time. The filing
date and filing time of UCC records are stored in the information management
system. Calculation of the lapse date of an initial financing statement is
based upon the filing date.
4)
Identification of parties. The names and addresses of debtors and secured
parties are transferred from UCC records to the UCC information management
system using one or more data entry or transmittal techniques.
5) Status of financing statement. In the
information management system, each financing statement has a status of active
or inactive.
6) Page count. The
total number of pages in a UCC record is maintained in the information
management system.
7) Lapse
indicator. An indicator is maintained by which the information management
system identifies whether a financing statement will lapse and, if it does,
when it will lapse.
b)
Names of debtors who are individuals. For the purpose of this subsection,
"individual" means a human being, or a decedent in the case of a debtor that is
the decedent's estate. This subsection applies to the name of a debtor or a
secured party on a UCC record who is an individual.
1) Individual name fields. The names of
individuals are stored in files that include only the names of individuals, and
not the names of organizations. The filing officer assumes no responsibility
for the accurate designation of the components of a name, but will accurately
enter the data in accordance with the filer's designations.
2) Titles and prefixes before names. Titles
and prefixes, such as "doctor", "reverend", "Mr.", and "Ms.", should not be
entered in the UCC information management system. However, when a UCC record is
submitted with designated name fields, the data will be entered in the UCC
information management system exactly as it appears.
3) Titles and suffixes after names. Title or
indications of status such as "M.D." and "esquire" shall not be entered in the
UCC information management system. Suffixes are not part of an individual's
name and should not be provided by filers in UCC records. Suffixes that
indicate which individual is being named, such as "senior", "junior", "I",
"II", and "III", are entered into the information management system exactly as
received.
4) Truncation -
individual names. Personal name fields in the UCC database are fixed in length.
Although filers should continue to provide full names on their UCC records, a
name that exceeds the fixed length is entered as presented to the filing
officer, up to the maximum length of the data entry field. The maximum length
of the data entry name field is 64 characters.
c) Names of debtors that are organizations.
This subsection applies to the name of an organization that is a debtor or a
secured party on a UCC record.
1) Single
field. The names of organizations are stored in files that include only the
names of organizations and not the names of individuals. A single field is used
to store an organization name.
2)
Truncation - organization names. The organization name field in the UCC
database is fixed in length. The maximum length is 200 characters. Although
filers should continue to provide full names on their UCC record or records, a
name that exceeds the fixed length is entered as presented to the filing
officer, up to the maximum length of the data entry field.
d) Estates. Although they are not human
beings, estates are treated as if the decedent were the debtor under Section
180.16(b).
e) Trusts. If the trust is named in its
organic records, its full legal name, as set forth in those records is used.
Those trusts are treated as organizations. If the trust is not so named, the
name of the settlor is used. If a settlor is indicated to be an organization,
the name is treated as an organization name. If the settlor is an individual,
the name is treated as an individual name. A UCC record that uses a settlor's
name should include other information provided by the filer to distinguish the
debtor trust from other trusts having the same settlor and all financing
statements filed against trusts or trustees acting with respect to property
held in trust should indicate the nature of the debtor. If this is done in, or
as part of, the name of the debtor, it will be entered as if it were a part of
the name.
f) Initial financing
statement. Upon the filing of an initial financing statement the status of the
parties and the status of the financing statement shall be as follows:
1) Status of secured party. Each secured
party named on an initial financing statement shall be a secured party of
record, except that if the UCC record names an assignee, the secured
party/assignor shall not be a secured party of record and the secured
party/assignee shall be a secured party of record.
2) Status of debtor. The status of a debtor
named on the record shall be active and shall continue as active until one year
after the financing statement lapses.
3) Status of financing statement. The status
of the financing statement shall be active. A lapse date shall be calculated,
five years from the file date, unless the initial financing statement indicates
that it is filed with respect to a public-financing transaction or a
manufactured-home transaction, in which case the lapse date shall be 30 years
from the file date, or, if the initial financing statement indicates that it is
filed against a transmitting utility, there shall be no lapse date. A financing
statement remains active until one year after it lapses, or, if it is indicated
to be filed against a transmitting utility, until one year after it is
terminated with respect to all secured parties of record.
g) Amendment. Upon the filing of an
amendment, the status of the parties and the status of the financing statement
shall be as follows:
1) Status of secured
party and debtor. An amendment shall affect the status of its debtors and
secured parties as follows:
A) Collateral
amendment or address change. An amendment that amends only the collateral
description or one or more addresses has no effect upon the status of any
debtor or secured party. If a statement of amendment is authorized by less than
all of the secured parties (or, in the case of an amendment that adds
collateral, less than all of the debtors), the statement affects only the
interests of each authorizing secured party (or debtor).
B) Debtor name change. An amendment that
changes a debtor's name has no effect on the status of any debtor or secured
party, except that the related initial financing statement and all UCC records
that include an identification of the initial financing statement shall be
cross-indexed in the UCC information management system, so that a search under
either the debtor's old name or the debtor's new name will reveal the initial
financing statement and the related UCC records. The statement of amendment
affects only the rights of its authorizing secured parties.
C) Secured party name change. An amendment
that changes the name of a secured party has no effect on the status of any
debtor or any secured party, but the new name is added to the index as if it
were a new secured party of record.
D) Addition of a debtor. An amendment that
adds a new debtor name has no effect upon the status of any party to the
financing statement, except the new debtor name shall be added as a new debtor
on the financing statement. The addition shall affect only the rights of the
secured parties authorizing the statement of amendment.
E) Addition of a secured party. An amendment
that adds a new secured party shall not affect the status of any party to the
financing statement, except that the new secured party name shall be added as a
new secured party on the financing statement.
F) Deletion of a debtor. An amendment that
deletes a debtor has no effect on the status of any party to the financing
statement, even if the amendment purports to delete all debtors.
G) Deletion of a secured party. An amendment
that deletes a secured party of record has no effect on the status of any party
to the financing statement, even if the amendment purports to delete all
secured parties of record.
2) Status of financing statement. An
amendment shall have no effect upon the status of the financing statement,
except that a continuation may extend the period of effectiveness of a
financing statement.
h)
Assignment of powers of secured party of record.
1) Status of the parties. An assignment shall
have no effect on the status of the parties to the financing statement, except
that each assignee named in the assignment shall become a secured party of
record.
2) Status of financing
statement. An assignment shall have no effect upon the status of the financing
statement.
i)
Continuation. Status of parties upon filing a continuation.
1) Continuation of lapse date. Upon the
timely filing of one or more continuations by any secured parties of record,
the lapse date of the financing statement shall be postponed for five
years.
2) Status of parties. The
filing of a continuation shall have no effect upon the status of any party to
the financing statement.
3) Status
of financing statement. Upon the filing of a continuation statement, the status
of the financing statement remains active.
j) Termination. Status of parties upon filing
a termination.
1) Status of parties. The
filing of a termination shall have no effect upon the status of any party to
the financing statement.
2) Status
of financing statement. A termination shall have no effect upon the status of
the financing statement. The financing statement shall remain active in the
information management system until one year after it lapses, unless the
termination relates to a financing statement that indicates it is filed against
a transmitting utility, in which case the financing statement will become
inactive one year after it is terminated with respect to all secured parties of
record.
k) Correction
statement.
1) Status of parties. The filing
of a correction statement shall have no effect upon the status of any party to
the financing statement.
2) Status
of financing statement. A correction statement shall have no effect upon the
status of the financing statement.
l) Procedure upon lapse. If there is no
timely filing of a continuation with respect to a financing statement, the
financing statement lapses on its lapse date, but no action is then taken by
the filing office. On the first anniversary of the lapse date, the information
management system renders, or is caused to render, the financing statement
inactive and the financing statement will no longer be made available to
searchers, unless inactive statements are requested by the searcher and the
financing statement is still retrievable by the information management
system.
